Optimism Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time. Refer to Optimism. In the short run what happens to the price level and real GDP? Select one: O a. both the price level and real GDP fall. O b. both the price level and real GDP rise. O c. the price level rises and real GDP falls. W O d. the price level falls and real GDP rises